Labor Unions, Social Security and the Law

UPI’s Peter Roff is reporting that the Bush Administration isn’t taking a certain type of labor union intimidation lying down:

The AFL-CIO has been at the forefront of the effort to derail President George W. Bush’s plan to add personal retirement accounts to Social Security. In fact, the country’s preeminent labor group has gone so far as to organize — not workers, but demonstrations — outside the offices of financial-services companies and brokers like Edward Jones and Charles Schwab to pressure them to drop out of business groups and coalitions working toward reform of Social Security.

Now, in a counterstrike, the Bush administration has issued a letter warning that unions that use the financial power of their pension funds to influence corporate decisions on reform may be violating the law.Responding to what it called reports that union officials have suggested “plan trustees could make decisions on the hiring and firing of plans’ service providers based upon their opinions on Social Security reform,” the U.S. Department of Labor’s Employee Benefits Security Administration reminded the labor group in a May 3 letter that the use of pension-plan assets for political purposes likely violates the Employee Retirement Income Security Act…

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